I am the primary sponsor of the FairTax, legislation that will repeal all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes - and replace it with a revenue-neutral personal consumption tax.
In regard to the above statment another interesting observation concerning H.R. 25 is, we are told the proposal will repeal income taxation and the IRS will be closed down. But is this really true?
After reading the language of H.R. 25 it becomes quite obvious there is no attempt to repeal or prevent Congress from laying and collecting an excise tax as upheld in FLINT v. STONE TRACY CO., 220 U.S. 107 (1911) a case decided prior to the adoption of the 16th Amendment. And why is this important? Because the tax upheld in the FLINT CASE is not an income tax, but an excise tax, and the amount of tax to be paid is calculated from “income’’ and does not rely upon the IRS CODE or income taxation which H.R. 25 mentions.
Under the language of H.R. 25, it appears the tax mentioned in the FLINT CASE remains untouched and is a loophole cleverly left which allows Congress, in keeping within the language of H.R. 25, to impose an excise tax upon Corporations, certain privileged occupations, individuals and events, and then calculate the amount of tax to be paid from profits and/or gains (income)!
So, in spite of all the talk about repealing various sections of the IRS Code and closing it down as portrayed on the cover of the Fair Tax Book, the same type of misery now suffered under income taxation, the Internal Revenue Service and the IRS Code, appears to remain very much alive under H.R. 25 by a subtle loophole left by the architects of the proposal!
If H.R.25 is adopted and Congress followed it to the letter with the loophole the architects have left, Congress is invited to simply erase the word “Internal” from “Internal Revenue Code” and replace that word with “Corporate“, as in “Corporate Revenue Code,” and, likewise erase the word “Internal” from “Internal Revenue Service” and replace it with “Corporate“, as in “Corporate Revenue Service“, and go about its business inflicting the same time consuming and costly misery upon Corporations and individuals as now done, but in addition, these corporations will also have to abide by and follow an additional rule book, the newly created H.R. 25 rule book, with all its new regulations for record keeping as will be created under H.R. 25!
H.R. 25, in all honesty, doesn’t “eliminate” squat as Boortz portrays on the cover of his book. And it especially does not even make an attempt to stop Congress from calculating a tax from corporate income.
H.R. 25 has carefully left the above mentioned loophole so Congress, especially a future socialist dominated Congress, even if the 16th Amendment is repealed as promised, to enact, say a small tax upon those wealthy evil corporations and scoundrels who make millions of dollars a year and bleed the poor working people, such as was alleged about Leona Helmsley who they sent to jail for an alleged tax fraud, but who actually contributed into the common treasury more in taxes than any twenty average working people in New York.
Perhaps I’m wrong and someone___ maybe even Neal Boortz or his talking pet pig___ will come to the defense of H.R. 25 and explain to us how H.R. 25 is intended to prevent Congress from laying an excise tax on Corporations, certain privileged occupations, individuals and events, and then calculate the amount of tax to be paid from income, leaving the American People in the same situation we are now in, but with an additional rule book to follow in the payment of taxes which tightens the iron fist of government around the productivity of the American People.
The only tax reform we need is for the people to demand their employees add the following words to our Constitution:
The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay “any” tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money.
See how easy real tax reform is? It doesn’t take 135 pages of bullstuff, loopholes and gobblygoo [H.R.25] which would leave us on a sinking ship…it only takes 32 words for the people of America to re-establish a fair system of taxation, our founder’s plan, which would also gain control of a runaway Congress!
Regards,
JWK
“He has erected a multitude of new offices and sent hither swarms of officers, to harass our people, and eat out their substance” ___Declaration of Independence
"... we are told the proposal will repeal income taxation and the IRS will be closed down. But is this really true? ..."
... you are making a misstatement of fact right there. "We" are not "told" that at all. Those actions are part and parcel of the language of the FairTax bill, HR25, and is available for anyone to read. It says it very clearly and in no uncertain terms. It not only removes the pertinent parts of the tax code, but eliminates and the IRS (and defunds it) as well as requiring the destruction of the income tax records.
Your so-called "16th repeal" wording does nothing of the sort - leaving all that bureaucratic mechanism and infrastructure in place awaiting the very artifice that you erroneously claim can be done with the FairTax which has eliminated that ability since there is not only no extant mechanism but there is no infrastructure AND there is no basis for continuing such a cleverly-misnamed tax as the basis for it - the income tax records - will have been destroyed.
Your circumlocutory palaver (your 16th wording) actually leaves all of those things intact merely awaiting the implementation of the artifice you accuse the FairTax of. You have exactly described what can be done using your own "16th wording" but erroneously ascribed it to the FairTax which will actually have eliminated the mechanism and infrastructure for doing so along with the basis for doing so (the tax records). In other words you are giving out incorrect information in both instances to not only hide your own TP agenda but to misrepresent what the FairTax does. Sort of flinging out BS with both barrels of your shotgun, johhnicakes.
Your scheme allows those income tax remnants to be used right along without missing a beat. Nor does your illogical wording hinder Congress in any respect from doing so and, in fact, your phrase "... any other lawfully realized money ..." merely shows how dumb the statement is. This would mean that only "unlawfully realized money" could be used by Congress to derive revenue from ... which source is, by definition, unknown in any great detail and presently evades almost all taxes (and that wouldn't change with your notion) - therefore making Congress ineffective in raising funds to operate. That, of course, is what you TP types hope for - the destruction of the government and creation of chaos.
Over and above all of that, johnnicakes, your "16 wording" does nothing to hinder Congress in raising funds and they would raise them from (guess what) ... taxpayers. These taxpayers will have to pay these taxes from the only place possible - their incomes in the form of (gasp) money. That would mean that immediately the tax would be apportioned to each state who would each in its own manner would have to put the squeeze on its citizens for the money which you had just said in your wording could not be taxed. That's more than just a tad deceitful, johnnicakes, that's a downright sham and lie.
Perhaps you can fool enough people to swallow such nonsense along with the other TP garbage, but if so they would certainly deserve what they would get.